The Belagavi District Cooperative Milk Producers Societies Union (Bemul) is planning to establish a mega dairy as part of a broader expansion programme aimed at reducing production costs, strengthening processing capacity and improving returns to milk producers.
Former Karnataka Milk Federation (KMF) president Balachandra Jarkiholi said efforts are underway to acquire 25 acres of government land, currently held on lease, for the proposed dairy project.
Addressing Bemul’s annual general meeting at Gandhi Bhavan, Jarkiholi said the union has maintained profitability for the second consecutive year and has also recorded its highest-ever milk procurement, reflecting increased participation by dairy farmers in the region.
He said Bemul earned around Rs 12.5 crore in profit in the current year, compared with Rs 13 crore in the previous year, with a significant portion of the earnings being directed towards farmer welfare and development programmes.
For 2025-26, Bemul recorded a business turnover of Rs 515.1 crore and a net profit of Rs 2.6 crore.
The union has approved several development initiatives, including Rs 13 crore for facilities at milk producers’ cooperative societies and member welfare programmes, Rs 2.5 crore for sales development and Rs 4.5 crore for infrastructure creation.
Buffalo Milk Procurement Emerges as Concern
Despite the overall growth in milk procurement, Jarkiholi expressed concern over declining buffalo milk supplies to the cooperative.
Of the 669 milk producers’ societies affiliated with Bemul, 215 reportedly did not supply any buffalo milk to the union.
A significant quantity of buffalo milk is instead being sold to private dairy companies, affecting Bemul’s ability to strengthen its presence in value-added dairy categories such as curd and ghee.
Jarkiholi urged farmers to supply at least 50% of their buffalo milk to Bemul to help the cooperative improve availability for processing and value-added product manufacturing.
The union has also introduced a new welfare initiative after insurance companies reportedly declined coverage for members above 70 years of age.
Under the scheme, families of deceased milk-supplying members will receive Rs 60,000, while families of non-supplying members will receive Rs 25,000 from the Farmers Welfare Fund.
Jarkiholi said several projects have been planned for 2026-27 and 2027-28 as Bemul looks to expand its infrastructure and improve operational efficiency.
He added that dairy farming, alongside sugarcane cultivation, has the potential to emerge as an important economic pillar for farmers in the Belagavi region.